This report presents the results of a study of the instrumentation tolerances for a conventional style Michelson stellar interferometer (MSI). The method used to determine the tolerances was to determine the change, due to the instrument errors, in the measured fringe visibility and phase relative to the ideal values. The ideal values are those values of fringe visibility and phase that would be measured by a perfect MSI and are attributable solely to the object being detected. Once the functional relationship for changes in visibility and phase as a function of various instrument errors is understood it is then possible to set limits on the instrument errors in order to ensure that the measured visibility and phase are different from the ideal values by no more than some specified amount. This was done as part of this study. The limits we obtained are based on a visibility error of no more than 1% and a phase error of no more than 0.063 radians (this comes from 1% of 2(pi) radians). The choice of these 1% limits is supported in the literture. The approach employed in the study involved the use of ASAP (Advanced System Analysis Program) software provided by Breault Research Organization, Inc., in conjunction with parallel analytical calculations. The interferometer accepts object radiation into two separate arms each consisting of an outer mirror, an inner mirror, a delay line (made up of two moveable mirrors and two static mirrors), and a 10:1 afocal reduction telescope. The radiation coming out of both arms is incident on a slit plane which is opaque with two openings (slits). One of the two slits is centered directly under one of the two arms of the interferometer and the other slit is centered directly under the other arm. The slit plane is followed immediately by an ideal combining lens which images the radiation in the fringe plane (also referred to subsequently as the detector plane).